Lloyds Banking Group: Share price shoots up |
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| Economy | |
| Written by Gary Howes | |
| Tuesday, 24 November 2009 | |
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Morning Business News, Tuesday 24 November: Lloyds Banking Group, Standard & Poor's, Tesco, JPMorgan Chase and Rolls Royce.
Lloyds Banking Group shares (LON:LLOY) are up 1.22% on the FTSE 100 this morning as investors whole heartedly back the latest capital raising issue by the bank. Lloyds Banking Group today launches the UK’s largest rights issue to raise £13.5bn ($22bn), offering investors new shares at 36p each, a huge discount, ahead of a shareholder vote on Thursday. The rights issue is part of a £22.5bn capital raising that aims to repair the bank’s balance sheet after its ill-fated 2008 takeover of HBOS. Lloyds Banking is expected to price the new shares at just over 36p, allocating about four shares for every three that investors currently own, the FT reports. Standard & Poor'sStandard & Poor's has given warning that nearly all of the world's big banks lack sufficient capital to cover trading and investment exposure, risking further downgrades over the next 18 months unless they move swiftly to beef up their defences. Every single bank in Japan, the US, Germany, Spain, and Italy included in S&P's list of 45 global lenders fails the 8pc safety level under the agency's risk-adjusted capital (RAC) ratio. Most fall woefully short, reports the Telegraph. TescoTesco (LON:TSCO) charges up to 3p a litre more for petrol than its rivals in areas where it faces no local competition, according to data seen by The Times. A snapshot of petrol prices across Britain reveals that Tesco charged 109.9p a litre for unleaded petrol at 164 locations. Only two Morrisons and eight Sainsbury’s charged as high a price. No branches of Asda did. The effect is even more pronounced with diesel: Tesco charges 6p a litre more at its most expensive store than at its cheapest. JPMorgan ChaseJamie Dimon, chief executive JPMorgan Chase (NYSE:JPM), is being discussed as a potential successor to Tim Geithner when the current US Treasury Secretary to hang up his hat. Dimon, who successfully steered JPMorgan Chase through the choppy waters of the global financial crisis, is thought of as a strong candidate to take over from Mr Geithner when the time comes, the Telegraph reports. Rolls RoyceRolls-Royce (LON:RR) could lose a $1.5bn (£903m) contract awarded only five months ago by Gulf Air after the carrier announced a big change in strategy. The Bahrain-based airline said yesterday that it would renegotiate contracts with Airbus, Boeing and Rolls-Royce for new long-haul aircraft and engines as it seeks to save $2.65 billion over the next five years, the Times reports. Rolls Royce shares are down 0.98% on the FTSE 100 on the news.
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